Tenant Fees

The Tenant Fees Act, coming into force on 1 June 2019, means that all fees charged by letting agents and landlords to tenants are banned, except for holding deposits, rent, deposits and charges for defaulting on the contract.

Although, keep in mind, all of these allowable fees are subject to additional restrictions under the Act.

Have questions about tenant fees or your tenancy agreement? Contact us today for clear, professional advice.

Permitted fees

  • Rent
  • Refundable tenancy deposit (capped based on annual rent)
  • Refundable holding deposit (capped at one week’s rent)
  • Early termination payments at the tenant’s request
  • Variation, assignment, or novation fees (capped at £50 or reasonable costs)
  • Utility, communication, TV licence, and council tax payments
  • Default fee for late rent and lost key/security device replacement (if specified in the tenancy agreement)

Banned fees

  • Viewing fees
  • Tenancy set-up fees
  • Check-out fees
  • Third-party fees not incurred by the landlord or tenant

Breach of the act

If you pay a banned fee, you will be able to get the money back, and refunded through the county court. Local Trading Standards can help you recover the fee too.

Enforcement consequences for landlords and letting agents

For landlords and letting agents, initial offences regarding banned fees can lead to fines of up to £5,000 issued by Local Trading Standards. Subsequent breaches are criminal offences or may result in civil penalties of up to £30,000.

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